Cashless payments are on the rise, ATM withdrawals have dropped sharply

According to data from the Payment Department (SBV), by the end of July 2023, the country had more than 103 million domestic cards and 36.7 million international cards in circulation. Of which, nearly 10.8 million cards opened using the eKYC electronic authentication method were in circulation.

In the first 8 months of this year, the growth of QR code payments was also very strong in terms of quantity with an increase of about 50 - 60% compared to the same period. This reflects that QR code payment services have entered even smaller-scale payments, meaning that people have accepted QR code payments in all aspects of life.

According to Mr. Le Anh Dung - Deputy Director of the Payment Department (SBV), payment services will be more fully integrated into the digital ecosystem in card opening and issuance activities, including user identity authentication and transaction authentication. Through that, online payment and card payment will become safer and more convenient.

“The State Bank of Vietnam is focusing on completing the draft Decree on non-cash payments (TTKDTM). The Government will soon collect public opinions to issue the Decree in the fourth quarter, thereby creating a more solid legal basis for TTKDTM,” said Mr. Dung.

In addition, the State Bank is also focusing on completing the guiding Circular, thereby creating a legal corridor for supply organizations and linking it with the protection of consumer rights, while resolutely implementing the tasks and solutions stated in the Project on developing e-commerce.

*Mr. Le Anh Dung, Deputy Director of Payment Department (State Bank of Vietnam).*

It can be seen that the diversity and benefits of new payment methods have contributed significantly to the strong development of the electronic payment sector in recent years.

Statistics through the system show that by the end of the second quarter of 2023, payment activities through NAPAS's network increased by 65.1% in number of transactions and 12.1% in value over the same period.

Of which, cash withdrawal transactions via ATMs in the second quarter of 2023 tended to decrease by 13.5% in quantity and 17.8% in transaction value compared to the same period.

The data shows that the trend of electronic payment is still growing strongly and is replacing cash in daily life.

According to Mr. Nguyen Quang Hung, Chairman of the Board of Directors of Vietnam National Payment Corporation (NAPAS), to meet the increasing payment demand, NAPAS has standardized its technology system. The system of machinery and equipment also ensures smooth payment 24/7 at any time, including long holidays.

Member banks have also unified payment technology to ensure security, safety, and transmission systems.

According to Mr. Hung, in the past, users used OTP codes to authenticate one-time transactions, but there were cases of criminals renting or buying accounts to commit fraud. With current technology, through biometrics, fraud cannot be committed on rented or purchased accounts.

“Biometric authentication will help to identify exactly who is using the account and who is authenticating the transaction. With the efforts of ministries and branches, through propaganda and technology application, we will completely overcome the problem of online fraud,” said Mr. Hung.

Also according to Mr. Nguyen Quang Hung, the NAPAS domestic card was first launched in January 2021, and to date more than 800,000 cards have been issued.

In addition to the service payment and cash withdrawal features via QR code, NAPAS has the ambition to turn this card into a "national card" when it is popularized to the majority of people.

Even through this card, people can be granted consumer credit from bank loans simply and conveniently.

In addition, NAPAS will continue to deploy card acceptance solutions by turning each smartphone into a POS (Tap to Phone) machine. Just a smartphone can replace a POS machine. Thus, accepting card payments will be easier, from small retail stores to street vendors.

“Hopefully, with solutions from the card issuer and card acceptor, the e-commerce payment method will develop further and promote the development of consumer finance,” said Mr. Hung.

Tuan Nguyen

Source